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July 30, 2009

Canada restates opposition to Downeast LNG

The Canadian government has restated that it won't allow liquefied natural gas tankers through Canadian waters to reach LNG terminals on the Maine side of Passamaquoddy Bay.

In a letter earlier this month to the Federal Energy Regulatory Commission, New Brunswick Premier Shawn Graham said LNG tankers heading through Head Harbour Passage, which are Canadian waters, enroute to a proposed terminal in Robbinston would have several adverse impacts, including threats to public safety and security, environmental degradation and "potentially significant economic harm in a region of New Brunswick that is fundamentally dependent on the pristine ecosystem of the Passamaquoddy Bay region for its economic well-being."

The letter is a response to FERC's draft environmental impact statement of Downeast LNG's plan for a 320,000-cubic-meter LNG terminal, storage tanks, regasification plant and a pier on an 80-acre site on Passamaquoddy Bay in Robbinston. Graham leaves little room for negotiation in the letter. "The impacts are not minimal or insignificant and many cannot be mitigated under any circumstances."

FERC's draft impact statement, released in May, said Downeast LNG's proposal has some adverse environmental impacts, but that they could be "reduced to less-than-significant levels" by the company's proposed mitigation efforts and additional recommendations included in the draft environmental impact statement. Read the entire draft impact statement.

Dean Girdis, president of Downeast LNG, told The Quoddy Tides he was not surprised by Graham's comments, but he did question Canada's ability to stop LNG tankers from using Head Harbour Passage. He maintains -- and says the U.S. government agrees -- that vessels have a right of innocent passage through the waterway under the United Nations' Laws of the Sea Treaty.

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